If an applicant requests a monetary limitation of greater than $3,000,000, what must be done with the applicant's financial statement?

When an applicant requests a monetary limitation greater than $3,000,000, the financial statement must undergo an audit. This requirement is in place to ensure the accuracy and reliability of the financial information being provided, as such a significant amount necessitates a thorough verification process to protect both the applicant's interests and the stakeholders involved.

An audit provides a high level of assurance, as independent auditors assess the financial statements for completeness and compliance with applicable accounting standards. This thorough examination gives added credibility to the applicant's financial standing, which is crucial when substantial monetary limitations are at stake.

Other processes, such as preparing or reviewing a financial statement, do not offer the same level of verification and assurance as an audit. Therefore, while those options have their own merits, the auditing requirement is specifically tied to the higher monetary threshold to maintain rigorous standards in financial reporting.